Oct 122012

Electronic transfer of Salary

Today every company is using ultra-modern techniques of doing businesses. The company’s staff strength depends upon its expansion or network. Bigger the staff, bigger is the strain of handling documentation related to maintaining details of salary or loan taken by the employee.

Companies now have started using payroll software because of its smooth, fast and easy communication with their staff and maintaining their salary part. HR and Accounts department are responsible for the timely payment of salary to an employee. Payroll software puts a tab on Attendance and Leave which exactly help HR department to keep a track how much salary the employee is drawing for the number of days present. Salary Management has earlier been a formidable task but today companies using payroll software, find it very easy to check every transaction.

Now it has become possible that salaries can be transferred to an employee’s bank account directly and at any moment of time. The banks are now offering the wide range of benefits to its customers.

Pre-requisite for Salary Transfer

  • Employer should have a Corporate Account in the bank.
  • Every employee should have a Salary Account in the same bank.
  • On the pay date, bank transfer statement has to be submitted to the bank.
  • Bank on receipt of the bank statement, credits the salary to the respective account of employees.
  • Employees will get credit of the Salary into their account on the same day.

The companies can avail facility of electronic salary transfer for making a large payout to its staff in less time than expected.  For Salary transfer, payroll officials does not have to come to bank, they can make online salary transfer sitting at their workplace. The Company willing to do so must have details of Employees and the Account number provided by the bank which they can use while transferring the salaries.  So there is no necessity of issuing a cheque to the employee and the salary amount is safely reaching the employees bank account.

The Salary Transfer through bank enhances the companies work for more efficient administration of corporate financial transactions. Salary transfer is more rather cost saving than traditional payroll management.